Microvision, Inc. Secures $15 Million Equity Investment From Walsin Lihwa Corporation
TAIPEI, Taiwan & REDMOND, Wash.--(BUSINESS WIRE)-- Microvision, Inc. (NASDAQ:MVIS), and Walsin Lihwa Corporation (TSE:1605), today announced that Walsin Lihwa Corporation, through its subsidiary Max Display Enterprises Limited, has agreed to invest approximately $15 million in Microvision. The investment is expected to be completed on June 22, 2009.
Under the terms of the securities purchase agreement, Walsin Lihwa's subsidiary will purchase 8,076,239 shares of Microvision's common stock at a price of $1.8573 per share., which represents a 15% discount to the average closing price of Microvision's common stock over the 30 trading days through June 18, 2009. Walsin Lihwa's subsidiary also will be issued a warrant to purchase 2,019,060 shares of Microvision's common stock at an exercise price of $2.1850 per share, exercisable until June 22, 2012. Microvision would receive an aggregate consideration of approximately $15 million in cash.
Walsin Lihwa is the parent company of Touch Micro-system Technology Corp. (TMT), a leading provider of micro-electro mechanical system (MEMS) technology platforms. Microvision has worked for a number of years with both Walsin Lihwa and then TMT, as manufacturers of Microvision's MEMS chips. Walsin Lihwa is a leading manufacturer of copper wire, specialty steel and power cables and wire in the Greater China region and has invested in high-tech companies since the 1990s, including in the areas of electronic components, optoelectronics, printed circuit boards and semiconductor ventures.
"Walsin Lihwa continues to seek further growth based on innovations," said Yu-Lon Chiao, Chairman of Walsin Lihwa. "We believe Microvision is well positioned with its PicoP technology to take advantage of large, emerging market opportunities."
"We are pleased to welcome Walsin Lihwa as an investor to Microvision in addition to being a key enabling strategic supply chain partner in our go-to-market strategy," said Alexander Tokman, President and Chief Executive Officer of Microvision. "We look forward to continuing the strong working relationship we have developed with Walsin Lihwa over the years."
Microvision has agreed to register the shares of its common stock sold as part of this transaction, and register the shares of its common stock issuable upon exercise of the warrant for resale under the Securities Act of 1933, as amended. The securities have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under such act and applicable state securities laws or an applicable exemption from those registration requirements.
Microvision provides the PicoP display technology platform designed to enable next-generation display and imaging products for pico projectors, vehicle displays, and wearable displays that interface with mobile devices. The company also manufactures and sells its bar code scanner product line which features the company's proprietary MEMS technology. For more information, visit our website at www.microvision.com and our corporate blog at www.microvision.com/displayground.
About Walsin Lihwa
Walsin Lihwa has become a leading manufacturer of bare copper wire, wire and cable, and specialty steel in the Greater China region, and has also expanded into the high-tech industry and become an international enterprise. With its copper wires, power and communication cables as well as specialty steel widely used in a range of infrastructure projects, the company now has annual revenues of over NT$150 billion and over 6,500 employees.
Forward Looking Statement
Certain statements contained in this release, including those relating to future business prospects, as well as statements containing words like "believe," and other similar expressions, are forward-looking statements that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially from those projected in the Microvision's forward-looking statements include the following: the risk of market acceptance of our technology and products; our ability to raise additional capital when needed; our financial and technical resources relative to those of our competitors; our planned future products dependence on advances in technology by other companies; our ability to keep up with rapid technological change; our ability to enforce our intellectual property rights and protect our proprietary technologies; the timing of commercial product launches and delays in product development; the ability to achieve key technical milestones in key products; our ability to secure needed third party manufacturing and sales resources, dependence on third parties to develop, manufacture, sell and market our products; potential product liability claims and other risk factors identified from time to time in the Microvision's SEC reports, including the Microvision's Annual Report on Form 10-K filed with the SEC. Except as expressly required by the federal securities laws, Microvision undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changes in circumstances or any other reason.
Source: Microvision, Inc.
Released June 22, 2009